The White House welcomes news of a new $100 billion ‘Mega Fab’ chip being built in New York by Micron Technology
Micron Technology is building a “sophisticated, sustainably built, pioneering Memory Fab to create nearly 50,000 jobs in New York.”
The Advertising On Tuesday, it revealed that Micro would spend up to $100 billion to build “the largest semiconductor manufacturing facility in US history.”
It comes after Micron set up a $15 billion (£13 billion) memory chip factory in Boise, Idaho last month. The company was reportedly considering building an $80 billion facility in Lockhart, Texas.
New York Megafab
But a month later, the only US memory chip maker announced plans to build a massive new building in New York, which would “increase the local supply of high-end memory and create nearly 50,000 jobs in New York, including nearly 9,000 high-paying jobs.” Micron jobs.
Micron has confirmed that it intends to invest up to $100 billion over the next 20 years to build a massive new building in Clay, New York, with the first phase planning to invest $20 billion by the end of this decade.
This represents the largest private investment in the history of New York State. The site could eventually include four 600,000 square feet of cleanroom, she said, for a total of 2.4 million square feet of cleanroom space — roughly the size of 40 American football fields.
Micron’s New York megafab is part of its strategy to gradually increase US-made DRAM production to 40 percent of the company’s global production over the next decade.
Micron controls about 11 percent of the memory chip market, with a major competitor being China’s YMTC, which was only founded in 2016 but has already captured about 5 percent of the market.
Site preparation work will start in 2023, construction will start in 2024, production output will rise in the latter half of the decade, and will gradually increase in line with industry demand trends.
US chips law
“I am grateful to President Biden and his administration for making CHIPS and science law a priority, for Senator Schumer and a bipartisan coalition in Congress for passing the legislation, and for Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible,” said Sanjay Mehrotra, Micron’s president and CEO.
“Micron will benefit from diverse, educated and skilled talent in New York as we look to build our workforce in the Empire State,” Mehrotra said.
“This groundbreaking historic mega-memory in downtown New York will provide benefits beyond the semiconductor industry by enhancing American technology leadership as well as economic and national security, and driving American innovation and competitiveness for decades to come.”
Micro reported that $5.5 billion in incentives from New York State over the life of the project along with anticipated federal grants and tax credits from CHIPS and the Science Act are necessary to support employment and capital investment.
In addition, the Town of Clay and Onondaga County provide key infrastructure support for Micron’s groundbreaking new semiconductor facility.
“After years of work, it’s official – Micron is coming to downtown New York!” Senate Majority Leader Charles Schumer said.
“Through the CHIPS and Science Bill, I wrote and endorsed the role of the smelter, Micron’s $100 billion investment in Upstate New York will fundamentally transform the region into a global manufacturing hub and provide tens of thousands of well-paying high-tech and construction jobs,” Schumer said.
“Today’s announcement is the result of my long struggle to bring manufacturing back to upstate New York,” Schumer said.
“The bottom line is that without Chips and science legislation, Micron would have decided to build its massive plant offshore,” Schumer said. “This investment leaves no doubt that the future of microchip manufacturing will remain not only in this country, but in Syracuse specifically, and that our future will be built in upstate New York, with New York central as the global center of the chip industry.”
Micron and the State of New York also announced a $500 million investment in community and workforce development with a focus on underserved populations for the duration of the project.
Micron will invest $250 million over the next 20 years as part of the company’s commitment to the Green CHIPS Community Investment Fund.
An additional $250 million is expected to be invested, including $100 million from New York and $150 million from local, state, and national partners.
The White House and US President Joe Biden also welcomed the announcement.
“To those who doubted that America could dominate the industries of the future, I say this – you should never bet against the American people,” President Biden said.
“Today is another win for America, and another huge new investment in America spurred by my economic plan,” the president said. “Micron, an American company, is investing $20 billion this decade and up to $100 billion over twenty years to manufacture CHIPS in upstate New York, creating tens of thousands of well-paying jobs.”
“Together, we’re building an economy from the bottom up and the middle out, lowering costs for our families and making it right here in America,” the president said.
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